Re:Ask PG: How do you tell a VC you're not ready for them yet?
by trevelyan on Sunday September 28, 2008 @06:56PM
(#317899)
A couple of thoughts:
(1) Ask yourself why they need the business plan? If these people do not already know who you are and how you make money, you shouldn't waste your time running through hoops to explain it to them unless you have a specific agenda at this point. If they need to understand your business invite them to lunch. If they need a document for other purposes anything you write will be ineffective and a waste of your time unless you understand those purposes.
(2) If you have a profitable business with growth, more growth potential and decent press, you will have LOTS of investors interested in you. And if you need VC you should put effort into talking to multiple people at the same time rather than one at a time. The threat of their missing the opportunity you are giving them to make money is what will get you better terms, not anything in a document that will be outdated in a few weeks anyway.
There is a lot of money out there for profitable ventures, and you are hopefully making some directly as well and reducing your need for outside investment on a day-by-day basis.
(1) Ask yourself why they need the business plan? If these people do not already know who you are and how you make money, you shouldn't waste your time running through hoops to explain it to them unless you have a specific agenda at this point. If they need to understand your business invite them to lunch. If they need a document for other purposes anything you write will be ineffective and a waste of your time unless you understand those purposes.
(2) If you have a profitable business with growth, more growth potential and decent press, you will have LOTS of investors interested in you. And if you need VC you should put effort into talking to multiple people at the same time rather than one at a time. The threat of their missing the opportunity you are giving them to make money is what will get you better terms, not anything in a document that will be outdated in a few weeks anyway.
There is a lot of money out there for profitable ventures, and you are hopefully making some directly as well and reducing your need for outside investment on a day-by-day basis.